GEOG 1410 Lecture 28: GEOG 1410 Lecture 3
GEOG 1410
January 18, 2018
Globalization: Its Economic-Geographical Impacts
Your wage is dependant on the market.
In developing countries, poorer countries support globalization and have benefited from
globalization.
Global inequality
● The wealth of 475 world billionaires = total income of >50% of the world
● Job situations are extremely bad
● The transnational capitalist class
● Average income of people has been rising, but unequally distributed!
● Decline of developed world middle class
● Support of Trump and Brexit is cause of flatlined middle class
● Enormous inequality in The US
● US is one of the most globalized countries
○ Proletarianization of the “Middle class’
○ Political expression in the election campaign: Sanders
○ Middle class is shrinking
Economic Development related impacts
● Increase in global productivity
● Knowledge/technology diffusion
● Competition between MNCs and local companies and among local companies
● Health, robotics, humanities
● Geographically uneven distribution of productivity
● If you cannot produce at a competitive price, go out of business
● Capital export from richer countries - industrialization in some less developed
countries - cheaper imports of relatively labour intensive manufactures into richer
countries
○ Potentially releases labour for high productivity jobs
○ Wages lower than otherwise because of cheaper imports
○ Increases profits for businesses
○ Potential for productive investment of profits
○ Women working at home contribute 1 trillion to the economy?
● Jobs that require more skill and education
● Wages in Canada and US are cheaper than they otherwise would be
● Chinese government is saying they are supporting low wage income people in the
developing world
○ China is producing commodities so cheap that anyone can afford, where
otherwise the cost of production would be too high
● Exports from selected less developed countries
○ Rise in income of specific segments of population
● Demand for
○ Consumer goods and services from richer countries
Document Summary
In developing countries, poorer countries support globalization and have benefited from globalization. The wealth of 475 world billionaires = total income of >50% of the world. Average income of people has been rising, but unequally distributed! Support of trump and brexit is cause of flatlined middle class. Us is one of the most globalized countries. Political expression in the election campaign: sanders. Competition between mncs and local companies and among local companies. If you cannot produce at a competitive price, go out of business. Capital export from richer countries - industrialization in some less developed countries - cheaper imports of relatively labour intensive manufactures into richer countries. Potentially releases labour for high productivity jobs. Wages lower than otherwise because of cheaper imports. Jobs that require more skill and education. Wages in canada and us are cheaper than they otherwise would be. Chinese government is saying they are supporting low wage income people in the developing world.